Decai Decoration Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Decai Decoration Co., Ltd.

Why is Decai Decoration Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -9.01% and Operating profit at -204.30% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.86% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -9.01% and Operating profit at -204.30% over the last 5 years

With a fall in Operating Profit of -25.34%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 8 consecutive quarters
The company has declared negative results in Jun 23 after 2 consecutive negative quarters
NET SALES(Q) At CNY 704.19 MM has Fallen at -27.05%
PRE-TAX PROFIT(Q) At CNY 1.93 MM has Fallen at -90.87%
NET PROFIT(Q) At CNY 1.96 MM has Fallen at -83.03%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Decai Decoration Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Decai Decoration Co., Ltd.

218.04%

5.61

55.47%

China Shanghai Composite

17.07%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-9.01%

EBIT Growth (5y)

-204.30%

EBIT to Interest (avg)

6.98

Debt to EBITDA (avg)

3.45

Net Debt to Equity (avg)

1.20

Sales to Capital Employed (avg)

0.89

Tax Ratio

15.24%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.48%

ROE (avg)

10.86%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.06

EV to EBIT

-19.30

EV to EBITDA

-24.23

EV to Capital Employed

1.44

EV to Sales

1.59

PEG Ratio

Dividend Yield

ROCE (Latest)

-7.47%

ROE (Latest)

-19.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 763.38 MM

NET PROFIT(HY)

Higher at CNY 5.27 MM

-35What is not working for the Company

NET SALES(Q)

At CNY 704.19 MM has Fallen at -27.05%

PRE-TAX PROFIT(Q)

At CNY 1.93 MM has Fallen at -90.87%

NET PROFIT(Q)

At CNY 1.96 MM has Fallen at -83.03%

ROCE(HY)

Lowest at -18.29%

INVENTORY TURNOVER RATIO(HY)

Lowest at 73.98 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.46 times

RAW MATERIAL COST(Y)

Grown by 29.3% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 123.4 %

INTEREST(Q)

Highest at CNY 45 MM

Here's what is working for Decai Decoration Co., Ltd.

Operating Cash Flow

Highest at CNY 763.38 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Decai Decoration Co., Ltd.

Net Sales

At CNY 704.19 MM has Fallen at -27.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 1.93 MM has Fallen at -90.87%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.96 MM has Fallen at -83.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 45 MM has Grown at 406.09%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 73.98 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0.46 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at CNY 45 MM

in the last five periods and Increased by 406.09% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 123.4 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 29.3% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales